Chinese FDI in Sub-Saharan Africa

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An Analysis of Chinese foreign directed investment in Sub-Saharan Africa, With a Particular Focus on Ethiopia

The book that must to read to know what Chinese are doing Sub-Saharan Africa.

This book inform you 90% of Sino- sub-Saharan African trade is based around natural resources; oil, ores and minerals.

Of course China has certainly been contributing to sub-Saharan Africa’s economic growth, both in terms of trade and with building of infrastructure.

However, the Chinese exports of natural resources by themselves do not help sub-Saharan Africa because oil and mining are not labor intensive industries which even if natural resources may create economic growth in figures, does not necessarily translate into widespread job creations.

In addition, large oil and mineral reserves can also distort the local currency, pushing up prices of other exports, such as agricultural and manufacturing products making them much harder to sell overseas.

What makes unique the China FDI in Ethiopia is almost 60% of these investments are concentrated in the manufacturing sector and infrastructural development, which is different from what, happened in other African countries where the Chinese FDI is pretty much resource seeking.

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